Dispute
Settlement Body 24 June 2002Panel
on US steel safeguards dispute grows to six co-complainants

At the
Dispute Settlement Body meeting on 24 June, second time panel requests
by China, Switzerland and Norway were granted. The DSB also agreed to
refer these complaints to the panel established on 3 June to examine
the EC's complaint.

NOTE:
This summary has been prepared by the WTO Secretariat’s Information and
Media Relations Division to help public understanding about developments
in WTO disputes. It is not a legal interpretation of the issues, and it is
not intended as a complete account of the issues. These can be found in
the reports themselves and in the minutes of the Dispute Settlement
Body’s meetings.

The
DSB agreed to refer complaints by China, Switzerland and Norway to the
panel established on 3 June. The panel now has six complaints: EC, Japan,
Korea, China, Switzerland and Norway; and 14 third parties: Brazil,
Chinese Taipei, Switzerland, Norway, Japan, Korea, Thailand, Canada,
China, EC, Mexico, Turkey, Venezuela and Cuba.

The
US regretted that China, Norway and Switzerland had chosen to challenge
their safeguard measures which, the US said, were fully consistent with
WTO agreements.

The
EC welcomed the establishment of a single panel and reminded Members that
New Zealand and Brazil were currently in the process of consultations with
the US on the same matter.

DS243: United States
— Rules of Origin for textiles and apparel products

The
DSB agreed to accept the request for a panel by India on the WTO
consistency of the United States legislation and administrative practices
on the rules of origin for textile and apparel products which, according
to India, have created restrictive, distorting and disruptive effects on
international trade. The US considers that its measures are fully
consistent with the Agreement on Rules of Origin.

Turkey blocked the first-time request by Ecuador (DS237) for the
establishment of a panel on the procedures for the imports of fresh fruit,
in particular bananas, into Turkey. Peru also blocked a first-time request
for the establishment of a panel made by Chile (DS255) on the modification
of the tax regime in Peru for the imports of products such as fish, milk,
fruit, vegetables and tea. Both request will be reconsidered by the DSB in
the next regular meeting on 29 July.

At
the DSB meeting it was agreed that the matter in relation to Canada export
credits and loan guarantees for regional aircraft (DS222) would be
referred to arbitration. Brazil requested the DSB to grant authorization
to take appropriate countermeasures in the amount of US$3.36 billion for
Canada's failure to follow the recommendations of the DSB within the
time-period specified by the panel, adopted by the DSB on 19 February 2002. Canada, which previously had requested without success for the
matter to be taken out of the agenda of the meeting, objected to the
countermeasures proposed by Brazil and asked for the matter to be referred
to arbitration.

Under other business, the US made a statement in which it reminded the DSB
of an agreement reached with Argentina on certain measures on the
protection of patents and test data. The US said they noted with concern
that the Argentine Supreme Court recently overturned an appeals court
decision that would have permitted adding product claims to pending
process patent applications. Argentina also made a statement saying that
both parties agreed that Argentina will fulfill its WTO obligations on
this matter through its legal system and practices, including decisions of
the Supreme Court of Justice, and that the decision by the Supreme Court
mentioned by the US has addressed this issue.

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